European stocks rise while futures fluctuate and pound jumps - TopForex.Trade

European stocks rise while futures fluctuate and pound jumps

Stocks in Europe rose on Monday despite the collapse in Chinese stocks as traders and investors look to the next round of earnings from some of the world’s biggest companies. The future of US stocks fluctuated due to falling Treasury yields.

European stocks rise while futures fluctuate and pound jumps

On October 24, European stocks edged higher even as Chinese stocks tumbled as investors look for the next earnings from some of the world’s biggest companies. US stocks fluctuated as Treasury yields fell.

The dollar strength indicator gained in fluctuating trading, which showed strong swings in the yen amid signs of a second intervention by the Japanese authorities in two sessions. The pound rose against the US dollar and UK government bonds jumped after Boris Johnson pulled out of the Conservative Party race, boosting former chancellor Rishi Sunak’s chances of becoming the next prime minister.

The Chinese yuan fell along with national stocks as traders and investors reacted to the risks posed by President Xi Jinping’s decision to merge his leadership positions with loyalists. Hong Kong’s Hang Seng Index fell about 6%, with tech companies hardest hit. Relations between China and the US continue to dampen sentiment and add uncertainty.


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Chinese economic data released on Monday showed a mixed recovery with rising unemployment and weakening retail sales despite picking up growth. However, the president’s Covid-0 campaign is likely to continue dragging the economy down, and there has been speculation that his “common prosperity” goal could even lead to property and inheritance taxes.

Markets have also been eyeing the fall in US bond yields as investors take into account the current state of aggressive monetary tightening by the Federal Reserve and the next phase, which could lead to a slowdown or suspension of interest rate hikes.

The Fed president made it clear last week that the discussion at the November meeting is expected to be about how high to raise rates and when to slow down the rate hike.

Equity indices gains in Japan and South Korea fell to less than 1%, while gains in US futures were almost completely halted as momentum waned after a solid open after Wall Street stocks hit their best week since June.


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